Question

24. Find the amount and compound interest when compounded quarterly for Rs. 6,000 at 20% p.a. for 6 months?

Answer 1

Answer:

Amount = ₹6,615

Compound Interest = ₹615

Step-by-step explanation:

Principal, P = ₹6,000

Interest at, r = 20% p.a. = 5% per quarter [compounded quarterly]

Number of quarterly periods in 6 months, T = 2

Amount $= P(1 + \frac{r}{100} ) ^{T}$ = ₹6,000 x $1.05^{2}$ = ₹6,000 x 1.1025 = ₹6,615

Compound Interest = Amount - Principal = ₹6,615 - ₹6,000 = ₹615